Unicommerce, Paytm both claim victory in data, copyright case

Unicommerce and Paytm are both claiming initial victories in their legal tussle in which the latter has accused the former of data theft.ET Bureau | Updated: April 23, 2016, 18:19 IST

Paytm, a digital wallet which also runs a mobile marketplace, insisted on Friday that the Delhi High Court had passed an order favourable to it by making a key pronouncementSnapdeal unit Unicommerce and Paytm are both claiming initial victories in their legal tussle in which the latter has accused the former of data theft and copyright infringement.

Paytm, a digital wallet which also runs a mobile marketplace, insisted on Friday that the Delhi High Court had passed order favourable to it by making a key pronouncement: it believes that the court has instructed Unicommerce—which provides technology that links digital marketplaces and merchants—not to access data connected with Paytm for itself.

But according to Unicommerce’s interpretation of Thursday’s proceedings, the court found no basis for Paytm’s allegations.

"Unicommerce is authorised by the sellers to access their data, in order to help them improve their business and it does not use the same for itself. It acts as an inbox, which is provided to sellers," Archana Sahadeva, advocate, Singh & Singh Lall & Sethi, representing Unicommerce, told ET.

"Paytm is, however, claiming such information as their proprietary data. Unicommerce, on the other hand, is simply a means and mechanism, and there is no mandatory requirement for sellers to go through Unicommerce. Further, Unicommerce can only access the sellers’ information. It does not have access to any Paytm proprietary information." Sahadeva said.

ET, however, was yet to examine the interim order passed by Justice Vipin Sanghi dated April 21st, to verify the claims made by both parties.

The next hearing of the case is scheduled for July 11. The Delhi Court also directed Unicommerce to file a written statement in reply to the plaint within two weeks.

The dispute spotlights problems that can arise because of shared access to data, which is increasing the lifeblood of the ecommerce industry. It also draws attention to the raft of disputes between internet companies, which are sometimes operating in uncharted legal waters.

Last month, ride hailing app Uber accused rival Ola of using underhand methods to disrupt its business, a charge that the Bengaluru-based company denies vehemently. Last year, hotel rooms aggregator Oyo sued rival Zo saying the latter had stolen proprietary data before the two companies agreed to merge.

In this case, Paytm suspects that customer and seller data available to Unicommerce could be accessed by Snapdeal, giving it an unfair competitive advantage.

“They (Unicommerce) have also submitted that they will not derive any information such as sales analysis or user behavior for any misuse. This is an important point since this data might have been used unduly by our competition,” a representative for Paytm told ET.

Unicommerce counsel Sahadeva also confirmed that the company, which was founded in 2012 by IIT Delhi graduates Ankit Pruthi, Karun Singla and Vibhu Garg, had given undertakings to the Delhi High Court that it would no longer use the Paytm logo, and remove a YouTube video, which had carried the Paytm logo.